The significance of asset class diversification for investors As we experience the longest bull market in stock market history, considerations of what may come next pervade investor's consciousness.1 Thoughts of previous bear markets — the circumstances behind their evolution and
Corporate stock buybacks in the US have grown in frequency and size over the past decades (see Figure 1 on the next page), leading to a host of concerns from market commentators. Among the most frequent concerns are that share
In volatile times like these – trade war fears or not – we believe global equity investors should stay focused on the fundamentals. The combined economic outlook for the world’s two largest economies, the US and China, is much improved
With fresh memories of 2018’s market correction, and valuations looking stretched, Asian investors are looking for sophisticated strategies fit for all market conditions. Financial markets have proved unpredictable so far in 2019. While the fog of US/China trade frictions have
Multi Asset Monthly With the US threatening to increase tariffs on an additional USD 100 billion of Chinese imports from 1 September, there is a considerable risk that this increased uncertainty will dampen business confidence and capex spending. To the
Investment Insights | Market Stories Macro themes We see 4 key themes underpinning the case for a constructive view on EM: (1) the most important is the Fed acting preventively to prolong the cycle and the impact on the USD;
As the U.S.-China trade war enters into a more serious phase, many investors may wish they had never heard of Emerging Market (EM) equities. Even before the U.S. decision to boost tariffs to 25% on $200 billion of Chinese goods,
Historical analysis shows that core emerging market (EM) strategies had a significant and persistent historical drift into growth style investing. This is despite the fact that EM value has outperformed EM growth over several extended periods during the previous 15
While markets may not be “high risk” from a historical standpoint, investors have been shifting from optimistic to pessimistic on a regular basis. The rapid shifts in sentiment have been partly triggered by political issues, which are hard to predict,
Financial markets have been enjoying a record-breaking run of late. The tide that lifted all boats was the new wave of ultra-accommodative monetary policy, at this stage announced but not yet delivered. The conviction that central banks (CBs) will step
Value has underperformed since the beginning of 2007. Another prolonged period of underperformance for Book-to-Price and Earnings-to-Price happened between 1926 and 1941. This paper offers a theory for the connection between the two periods: they coincide with the central turning
Growth stocks continue to grow, value stocks continue to gain value, if this is defined as a discount to the market. This cannot go on forever. But still may for a while.
US and European equity markets continued upward during the second quarter of 2019, albeit at a more moderate pace. Expectations of monetary easing by major central banks provided a short-term boost but leaves us with little visibility of what comes
Welkom in een nieuwe wereld. Er is nog steeds geen handelsdeal en de winstherzieningen zijn verslechterd. Bovendien zijn centrale banken over de hele wereld nu nog milder dan in het vorige kwartaal. Onze vooruitzichten voor ontwikkelde markten blijven neutraal en
Investors today have made sustainable investing a fundamental part of their strategies, yet sustainable investment still remains a broad, and often vague, category, with few trustees or investors as experts. Given this state of affairs, and because we care deeply
Why we upgrade European assets We have closed our underweight in European equities and credit, and upgraded government bonds to overweight. The impetus? We see the European Central Bank (ECB) delivering fresh stimulus over coming months, against a backdrop of
Applying a reduced capital charge of 22% to investments in listed and unlisted equities The European Commission (EC)’s Delegated Regulation of 8.3.2019 amends the Solvency II Directive in different areas. Most notably, from an investment perspective, a new category of
KEY POINTS We believe: – Economic development is generating four forces of structural change across emerging markets (EMs): greater inclusiveness, enhanced productivity, improved living standards and better sustainability. – Countries that make progress towards economic development offer more fertile environments for
Monthly Commentary | June 2019 On the surface, I am surprised this most recent correction was so muted:
Equity factors were born from thinking that challenged the basics of modern finance. by Head of Quantitative Strategies Michael Hunstad, Ph.D., and Quantitative Research Analyst Rob Lehnherr, CFA A select group of equity factors — value, small size, momentum, low
Uncommon truths It’s been a good year for all assets. The fact that equity markets have reacted positively to falling bond yields may suggest a change in the correlation regime. We remain sceptical about that and stick with absolute equity
GIAM Macro & Market Research – Market Commentary As published this morning, China’s GDP growth receded to 6.2% yoy in the second quarter. This number was widely expected by market forecasts (Reuters, Bloomberg) and thus no surprise. However, it marked
Bij ‘’uitlenen van effecten’ leent de eigenaar (uitlener) zijn of haar effecten uit aan een derde (inlener). De uitlener ontvangt hiervoor een vergoeding van de inlener. Bovendien wordt de inlener verplicht een onderpand te reserveren. Dit onderpand – vaak in
Portfolio Manager John Fujiwara explains how equity and bond views of the U.S. economy are at odds with each other following the Fed’s dovish pivot.
Global Investment Committee Outlook Time for more defense Nuveen’s investment theme in 2019 has been Expect a tougher climb. A straightforward declaration, but one with nuance and range: For the first half of the year, the emphasis was still on
